The Government of Georgia provided the Parliament of Georgia with information on critical macroeconomic forecasts and areas of activity.
Following the government of Georgia, the debt of the Georgian government in 2020 will reach 58% of GDP, and 46.2% of it will be an external debt, while 11.8% - will be domestic.
The document says that this indicator is low compared to the level of public debt, defined in the Act on Economic Freedom (60% of GDP).
However, maintaining this indicator in the medium term is fraught with significant risks, and a consolidation policy must be pursued in subsequent years.
As the document reads, in 2021-2024, a sequential reduction in public debt is projected, and a decrease in this indicator will be 54.5% by 2024.
The 2020 budget incomes will decrease to 1.8 bln GEL. The government reduces administrative and capital expenses to 600 mln GEL. The document says that bonuses will not be considered.
"The reduction will mainly affect the tourism infrastructure, as well as those projects in which the share of imports is particularly high," the report said.
As the document reads, in 2019, GDP growth totaled 5.1%. Due to the crisis caused by COVID-19, in 2020, the economy will shrink by 4%. However, in subsequent years this figure will begin to grow.
"By 2024, nominal GDP will increase to 70.4 bln GEL and GDP per capita, compared to 2019, will increase by 5.5 thousand GEL and will amount to 18,917GEL," the document says.
Bela Gelashvili
News Author